Indonesia Targets Diesel Import Halt as Balikpapan Refinery Nears Completion

JAKARTA, Investortrust.id — Energy and Mineral Resources Minister Bahlil Lahadalia said on Tuesday, Dec 30, 2025 in Jakarta that Indonesia plans to stop importing diesel fuel in 2026 once the Balikpapan Refinery Development Master Plan operated by Pertamina becomes fully operational, a move expected to strengthen national energy security. The policy hinges on the readiness of domestic refining infrastructure to meet rising demand.

Bahlil said full operation of the Balikpapan refinery would push Indonesia into a diesel surplus of around 3 million to 4 million kiloliters per year. He said the surplus would allow the government to eliminate diesel imports entirely once the facility reached optimal capacity.

“Diesel in 2026, if our RDMP is completed, we will have a surplus of roughly 3 million to 4 million kiloliters, so our agenda for 2026 is no more diesel imports,” Bahlil said after inspecting the Plumpang fuel terminal.

Despite the target, Bahlil said the government remained flexible depending on the refinery’s actual start date. He said small volumes of imports could still occur in early 2026 if full operations were delayed.

“If full operation only starts in March, then January and February might still require a small amount of imports to maintain stock security,” he said. “But if imports are not needed, then we will not execute them.”

Beyond supply sufficiency, the Energy Ministry was also preparing a roadmap to improve diesel quality. Indonesia currently distributes diesel with a cetane number of 51, but the government aimed to gradually upgrade domestic fuel standards to Euro 5 levels.

Bahlil said the main challenge lay in upgrading existing refinery infrastructure, but the government remained committed to modernizing facilities to achieve higher environmental standards. He added that the refinery upgrades were part of a broader strategy to reduce reliance on imported fuel.

The Balikpapan RDMP project is classified as a national strategic project with an investment value of about Rp 126 trillion, equal to roughly $7.4 billion. The refinery upgrade is one of the largest single-location investments undertaken by a state owned enterprise to cut fuel imports and support Indonesia’s long term energy resilience.